Chapter 1

The Meaning and Importance of Meeting, Convention and Exhibition Industries

Learning Objectives
1. To define a meeting, convention and exhibition.
2. To describe the role of convention and exhibition industry in the tourism
industry.
3. To understand the components of convention and exhibition.
4. To be familiar with the history of meetings, conventions and exhibitions.
5. To explain the growth of the meetings, conventions and exhibition industry.
6. To appreciate the importance of holding a convention and exhibition.

Definition of Meeting, Convention and Exhibition

A meeting is a conference, workshop, seminar or other event designed to bring

people together for the purpose of exchanging information. Meeting do not include
exhibits.

A convention is an event in which meetings are combined with exhibitions.

An exhibition is an event designed to bring together providers of products,

equipment and services in an environment in which they can demonstrate their
products and services to a group of participants in a convention trade show.

The Role of the Convention and Exhibition Industry in the Tourism Industry

The convention and exhibition industry is an exciting and profitable segment

of the tourism industry. A major source of revenue for the tourism industry comes
from the meetings, conventions and exhibitions segment of the industry. As the
tourism industry saw great increases in expenditures, meetings and conventions and
1
exhibitions experienced great growth as well. With the many changes the tourism
industry has undergone in the past 20 years, the importance of meetings, conventions
and exhibitions has become more recognized. The need to communicate with one
another face to face has been the driving force behind the growth of this industry.

Components of the Convention Industry

There are four major components of the convention industry namely; planners
and groups they represent, host facilities, services and exhibitors.

Planners are individuals or group that plan meetings, conventions and

exhibitions. Planners are classified into a number of categories such as corporate
meeting planners, association meeting planners and independent meeting planners.
Corporate meeting planners work exclusively for a corporation. Association meeting
planners work exclusively for an association. Independent meeting planners contract
their services to both associations and corporations.

Host facilities provide lodging, meeting rooms and food and beverage as well
as a number of other services for groups attending meetings, conventions and
exhibitions. Host facilities including hotels, conference centers, resort hotels,
universities, bed and breakfast inns, etc.

Services refer to individuals and organizations that provide support for

meetings, conventions and exhibitions segment of the tourism industry. Service
suppliers include transportation companies, attractions, tour guide companies and
entertainers.

Exhibitors are financially linked with all segments of meetings, conventions

and exhibitions industry. They provide much of the revenue needed for the planners to
hold meetings, conventions and exhibitions. Exhibitors are persons who work for the
company. Other names for exhibitor are advertising director, communication director

2
or director of marketing who is involved with the corporate exhibit program. The main
aim of Exhibitors is to introduce their products, both new and old, to an interested
audience.

History of Meetings, Conventions and Exhibitions

Archeologists who investigated ancient cultures have found ruins that served
as places where primitive people gathered to discuss common interest such as hunting
plans, war activities, peace negotiations and tribal celebrations. Each village or hamlet
had its common gathering place. As geographical areas grew cities become meeting
places for people who wanted to trade goods or discuss common problems. As cities
become the center of activities for geographical regions and transportation improved,
the desire of the people to gather to discuss things of common interest became more
widespread. Trade associations, professional, fraternal and religious associations had
their historical roots in Europe. In the United States, such activity took places only in
the mid 1800’s. As America grew, so did its trade, professional, fraternal and religious
associations.

In the Philippines, Manila, its capital, is proud to have pioneered the

international meeting industry in Southeast Asia. 1976 was a memorable year of the
region. It was in this year that Manila opened the door to Asia’s first full-fledged
convention center – the Philippine International Convention Center (PICC) TO THE
International Monetary Fund/World Bank Meeting. Since then, Manila has developed
professionalism and expertise. It has developed an infrastructure of deluxe
accommodations to support a versatile range of meeting facilities. In 1996, Manila
celebrated 20 years as a leading destination for meetings, conventions and exhibitors.

3
The Growth of the Meetings, Conventions and Exhibition Industry

The growth of meetings, conventions and exhibition industry has been

remarkable. Most of this development has occurred within the past 2-5 years. This
growth has been due to several factors: meeting planners associations, the airline
industry, the lodging industry, convention centers, conference centers, meeting
technology and ground handlers.

Meeting Planners Associations

There was unmatched development of associations connected with meeting

planners. These associations not only grew in numbers but also expended the list of
services they offered to their members. Majority of these associations increased their
emphasis on education. Other growth Factors included the rise of the independent
meeting planners, the increase in the number of women planners, certification and
development of standards and the integration of travel agents into the profession.

Airline Industry

The advancement of the airline industry enabled people to travel quickly and
efficiently. This was made possible by the introduction of the jet airplane – an
invention that revolutionized transportation worldwide. A relevant factor was the
deregulation of the airline industry which resulted in the vigorous competition among
airlines to attract more passengers. This caused a reduction in the cost of air travel.

Lodging Industry

The lodging industry recognized the financial importance of meetings,

conventions and exhibitions. Hotels grew and became convention centers. Hoteliers
learned to adopt their services to different clients. Property marketing directors learned
how to work with meeting planners.

4
Convention Centers

Convention centers expended in terms of exhibition spaces, accessibility and

storage facilities. They were able to accommodate all the activities of a convention
and trade show under one roof. Traffic was improved allowing large numbers of
people to move quickly from one area to another.

Convention Bureaus

Convention Bureaus rapidly both in numbers and size of operations. The

number of bureaus has doubled since 1980, from 100 to more than 250. Their
operations have become more professional. They actively participated in industry and
association affairs.

Conference Centers

Conference centers changed their appearances during the past two decades. For
some time, they maintained a “business only” appearance. This has been replaced by
modern restaurants, recreational facilities and the latest high-tech audio-visual
equipment.

Meeting Technology

Modern audiovisual equipment gave meeting planners a greater degree of

flexibility and creatively that was never possible in the past. Video projectors, 360-
degree projection techniques, multi -image presentations and unique sound systems
have become very common.

Ground Handlers

Effective ground arrangements become necessary as meetings and conventions

become more complex. Ground arrangements include planning tours, transportation,
sightseeing, banquets and hotel reservations. Convention service companies were
established in the 1970’s to develop creative meeting programs.

5
 Importance of Holding a Convention/Exhibition

One of the most rapidly growing segments of the tourism industry is the
convention and exhibition industry. In the United States, it has developed into an
industry which is worth more than $25 billion: The international convention and
exhibition market has grown considerably in Western Europe mainly in France,
Belgium, Great Britain and Switzerland.

Conventions and exhibitions generate a tremendous amount of revenue within

the tourism industry. Travel sales from meetings, conventions and exhibition industry
are so important to the economy that all levels of government have organized,
advertised and provided services to attract these groups. The United States has offices
in major industrial countries to help organizations with travel arrangement to the U.S.
Each state allots a major part of its budget to advertising to encourage conventions and
business travel to their state. Majority of cities with population of around 200,000
have visitor and convention centers which aim to attract and support meetings,
conventions and exhibitions.

Over the years, the International Association of Convention and Visitors

Bureaus has undertaken an assessment of the economic impact of meetings,
conventions and exhibitions. Its was found out that out-of-town convention delegates
spend an average of $638 for a 3.5 day stay. Delegates to international, national or
regional conventions/exhibitions stay an average expenditure exceeded $1,000
including exhibitor and association expenditures.

The International Association of Convention and Visitors Bureaus has

conducted these studies for several years involving U.S and non-U.S cities. These
studies showed that approximately 82 million delegates attended 267,810 meetings
with a direct economic impact of more than $56.6 billion.

6
7